Forums: Discussions for entrepreneurs and small business.

Help!  I need to find a way to convince my partner that we need to have annual price increases of at least 2-3% to keep up with our costs.  He is afraid of alienating our customers.  I know that our prices are slightly above national average in our industry but we also are producing a higher end product so our prices should be higher.  I need some good advice from some more experienced entrepreneurs.  Thanks for you help.  CJ

Test is out, see how it goes.  I can`t imagine your customers would even notice or care about a 2-3% bump.  If they do, then you are more of a commodity then you think and might need to revisit the BP.

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Travis Tschepen
Hibachi Bros. LLC

--My goal in life is to be as good of a person my dog already thinks I am.--

Great argument...I`ll use that.  Thanks!! I agree with your analysis and I think since I`m too close to the situation have lost some creative ability to think of how to present this.  Love you idea.  CJ

Depends on what you are selling.  Check your competitors prices and if you can compete and still keep market share, and are still booking a decent profit, I would not raise prices either.

The comment is correct that if your clients are only with you on price they are a commodity.  However there is significant cost to acquiring a new client, so work on strengthening your existing relationship with them, then pass on your price increase. 

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Dale
www.ourbestidea.com
www.maskerinsurance.com
www.maskercreations.net